[Alpha Biz= Paul Lee] Samsung Securities has lowered its target price for LG Energy Solution from KRW 550,000 to KRW 480,000, maintaining a ‘Hold’ rating. Analyst Cho Hyun-ryul explained that the cancellation of supply contracts with Ford in the U.S. and European automakers will inevitably reduce revenue and profits from 2027 onwards.

Over the past 18 months, LG Energy Solution secured six new orders to offset low utilization rates at its European plant. However, the recent contract terminations will impact deliveries totaling 23.4 GWh. Cho added that securing replacement orders will be challenging, and the slowdown in electric vehicle markets in the U.S. and Europe is expected to continue into the first quarter of next year.

Following the announcement, LG Energy Solution shares closed down 8.90% at KRW 378,500.

 

 

 

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